Audit: Knox County offices, finances in ‘poor’ shape

Knox County’s financial and office operations were rated as “poor” in a state audit report released Friday.

Missouri State Auditor Tom Schweich highlighted poor financial management and improper use of funds as well as generally lax financial controls and lack of accountability in county governing that resulted in the loss of at least $46,000 of the county’s 2011 revenue due to a tax classification error.

The report’s “poor” rating, the lowest on a four-point scale, indicates the county needs to significantly improve its operations, according to the audit.

In the audit, the state highlighted improper financial actions including a misclassification of tax revenue that resulted in a loss of between $46,000 and $79,000 in property tax revenue for 2011, use of Road and Bridge funds for sheriff’s office vehicles’ fuel costs and the attempt to pass a second 1/2-cent law enforcement sales tax that would have violated state law due to exceeding the maximum allowed amount.

The loss of property tax revenue was due to an incorrect certification of a 2010 general revenue property tax reduction, resulting in a reduced tax rate ceiling for 2011.

Auditors estimated the county had collected between $46,000 to $79,000 less in 2011 property taxes than it would have if the reduction had been property classified.

“It is essential the County Commission address the county’s financial condition both in the immediate and the long-term future,” the report states. “Reduced spending where possible, evaluating controls and management practices to ensure efficient use of county resources, maximizing all sources of revenue and closely monitoring county budgets are necessary to improve the county’s financial condition.”

In addition to the recommendations, the audit’s “poor” rating will mean the state auditor’s office will be revisiting with county staff to ensure proper steps are taken to address the highlighted issues.

“The Knox County Commission is constantly striving to improve the county’s financial condition; however, this is becoming increasingly difficult given the ever increasing costs of necessary goods and equipment,” in a response to the audit report provided by the Knox County Commission.

The audit also noted pervasive lack of records management or accountability that could prevent improper fund usage.

Knox County officials noted in the audit they are working to implement feasible recommendations and will continue to work with the state auditor’s office.